AUSD stablecoin plunges to $0.05 after hacker attack

Unknown attackers targeted the Acala Network protocol built on Polkadot and issued more than 1.2 billion AUSD. As a result, the price of the stablecoin briefly dropped to $0.05.

At the time of writing, the “stable” coin trades at around $0.87.

We have identified a configuration issue with the Honzon protocol affecting AUSD. We are conducting an urgent vote to pause operations on Acala during the investigation and resolution of the issue. We will report when the network returns to normal operation,

We have noticed a configuration issue of the Honzon protocol which affects aUSD. We are passing an urgent vote to pause operations on Acala, while we investigate and mitigate the issue. We will report back as we return to normal network operation.

— Acala (@AcalaNetwork) August 14, 2022

According to the WatcherGuru Twitter account, the attackers used an exploit and “printed” 1.2 billion AUSD.

JUST IN: Hackers printed 1.2 billion $AUSD on the Acala Network through an exploit.

— Watcher.Guru (@WatcherGuru) August 14, 2022

As of writing, the assets are on the hacker’s кошельке. The price of the stablecoin began to recover, but has not yet returned to the $1 mark.

The Acala startup was founded by New Zealanders. According to the creators, the AUSD stablecoin enables liquidity for assets locked in staking. The token can be issued against collateral of various cryptocurrencies, including Polkadot, Kusama, Acala and Karura.

In March, Acala Network launched a $250 million fund to promote the use of AUSD.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analytics.